If a Partner Contributes Services on the Formation of a Partnership,how

question 58

Multiple Choice

If a partner contributes services on the formation of a partnership,how much income does the service partner recognize,if any?

• A)$0.
• B)$0,unless the partner receives a cash distribution.
• C)An amount equal to the FMV of the services rendered.
• D)$0 if the partner's basis was $0 when the services were performed.

---

Definitions:

Traditional Delivery

This term refers to conventional methods of delivering goods or services, such as mail or in-person services, as opposed to digital or automated solutions.

Electronic Marketing

Utilizing digital platforms and technologies to promote products, services, or brands to potential customers.

Industrial Distributor

A business that purchases goods directly from manufacturers and sells them to companies, usually in large quantities for industrial use.

Global Broker

An intermediary who facilitates international transactions and investments between parties from different countries.